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Power shortages, new repo rate forecasts

The ongoing heatwave and related power shortages in India pose a downside risk to growth, but we think the biggest risk is the upside one to inflation. Indeed, rising price pressures prompted the RBI to turn even more hawkish and hike rates in an unscheduled announcement this week. Our repo rate forecasts were already more hawkish than the consensus but we've revised them up further.
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